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hammer [34]
3 years ago
11

For each of the following item below, indicate to which category of elements of financial statements it belongs.

Business
1 answer:
sergiy2304 [10]3 years ago
7 0

Answer:

Explanation:

As we know that

The statement of stockholder's equity includes common stock and retained earnings.

The net income is a difference between the total revenues and total expenses

The assets, liabilities and stockholders ' equity are reported in the balance sheet

So, the categorization is shown below:

a. Retained earnings = Equity

b. Sales = Revenues and shown in the income statement

c. Additional paid-in capital = Equity

d. Inventory = Current assets

e. Depreciation = Expense and shown in the income statement

f. Loss on Sale of equipment = Losses

g. Interest payable = Current liabilities

h. Dividends = Shown in the retained earning statement in a negative amount

i. Gain on sale of investment = Gains

j. Issuance of common stock = Owners investment

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Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2023.The following items are taken f
Aliun [14]

Answer:

A) See attached file for Balance Sheet

B) Current ratio = 1.26

C) Debt to Asset ratio = 18%

The Current ratio tells us that the company has 1.26 dollars of current assets to cover 1 dollar of current debt. That is a good thing, but to know if it´s enough covers, further information is needed. Others ratios can help to complete the picture as for example, quick ratio, assets turn over, inventory turn over, receivables turn over, etc. The debt to assets ratio. Tells us that the company owes 18% of its assets. The rest belongs to the stockholders. Again, it´s a good thing, but further information can help us to know if the company can invest in new projects, financing it with debt in a profitable way, for example, if Return on Assets is higher than debt rate.

Explanation:

B) Current ratio = Current Assets / Current Liabilities

   Current ratio = 52,140 / 41,400

   Current ratio = 1.26

C)Debt to Asset ratio = (Total Liabilities / Total Assets)*100

   Debt to Asset ratio = (121,400 / 691,400)*100

   Debt to Asset ratio = 18%

The current ratio measures a company's ability to pay short-term obligations or those due within one year, by relating current assets with current liabilities (liquidity ratio). The debt to total assets ratio shows the percentage of a company's total assets that were financed by creditors (financial ratio).  

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3 years ago
Fred Hash worked for Van Stavern Construction Co. as a field supervisor in charge of constructing a new plant facility. Hash ent
Eduardwww [97]

Answer:

<em>Ratification by Principal One of the criteria for enactment is that all material truths involved in the transaction must be known to the Principal. Van Stavern was not aware of Hash's behaviour. </em>

He did not realize that somehow the steel is being shipped under his name, and that the shipments were being billed him directly. Unlike liability through obvious authority, approval by the principal is a positive act by which he or she acknowledges the agent's illegal actions.

Just a principal would ratify; thus, Van Stavern was not directly imputed to information by the invoices and checks signed by Van Stavern's workers.

The court stated that the use of corporate checks was further proof that Van Stavern regarded the expenditures as business, not private. So Van Stavern could not be held personally liable.

Remember that on Sutton Steel that's not excessively harsh. Sutton understood it was working with a building company and did not seek to get the personal approval of the contract from Van Stavern.

<em>Lawfully, Sutton's agreement in this case is called an unaccepted offer which can be withdrawn at any time.</em>

<em></em>

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3 years ago
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Umnica [9.8K]

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3 years ago
The first step in the process of creating a marketing plan is to
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The right answer for the question that is being asked and shown above is that: "• set marketing objectives." The first step in the process of creating a marketing plan is to <span>set marketing objectives. The group must know the goals and objectives why they are making a business or something.</span>
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Suppose that the European Union is now experiencing a recession. Its actual real GDP is €200 billion, and the estimate of its po
jek_recluse [69]

Answer and Explanation:

As per the data given in the question,

The central bank have various tools to apply expansionary policy and these tools are :

- Reserve ratio.

- Discount rate.

- Open market operations.

The open market operations include the buying and selling of government owned securities by central bank to impact the monetary base in the economy. In case of any recession, the central bank should purchase government securities to enhance the money supply. Because whenever they do any kind of open market purchase there would definitely be increase in money in the economy. That's why increment in money supply decrease the interest rate in economy.

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